PGZ Comments on the Report Issued by the Polish Supreme Chamber of Control

Within the issued release, PGZ recalls the fact that the Supreme Chamber of Control does not question the fact that the Polish Armaments Group has been established. The management of the group stated that the Chamber’s remarks concerning the period of activity undertaken by the former leadership are “fully justified” and accurate”. 

I regret the fact that the audit of the Office showed that irregularities occurred in the process of consolidation of the defence industry, carried out under the PO-PSL coalition, and that this process took place without any respect for the law. However, I cannot disagree with its results, since the comments made by the Office addressed at our predecessors are accurate and reasonable

President of the PGZ Group notes that the company is supported and monitored by the Polish Ministry of Defence, which is related to introduction of a new management model for the defence industry. Meanwhile, Siwko also stresses the fact that since the consolidation took place during the term of office of the PO-PSL government, the related steps were being carried out by the former management.

I would like to emphasize that this process was carried out by the previous Management Board of PGZ, and the consolidation took place at the time of the rule of the PO-PSL coalition. Now, Polska Grupa Zbrojeniowa, with the support of the Ministry of National Defence and the Minister Antoni Macierewicz, who oversees PGZ, is implementing a new defence industry management model and seeks to rationalize the PGZ Group's activities

Arkadiusz Siwko noted that the current management of the Group is driven towards limitation of the negative consequences of the decisions taken by its former counterpart, even though the effects of the aforesaid decisions will still be visible for quite some time. Moreover, Siwko also noted supervision provided by the Polish Ministry of Defence, led by Antoni Macierewicz. He assures that thanks to the above control, similar errors are not taking place, and will not emerge in the future.

Thanks to the fact that now the Ministry of National Defence, headed by Minister Antoni Macierewicz, oversees PGZ the period of irregularities and pathology in the defence industry has ended, similar irregularities do not and will no longer occur. We also aim to minimize negative consequences of the decisions that were taken by the previous management at the time when the PO-PSL coalition was governing. Unfortunately, however, for a certain period PGZ must function under conditions that have been determined by these decisions’

The management of the PGZ company, responding to the conclusions reached by NIK [Supreme Chamber of Control], concerning the maintenance of branches in Warsaw and Radom, claims that the Group is taking actions to “rationalize” the cost of business activities undertaken by PGZ at both of these locations. The management also stressed the fact that the agreements concerning the office space “exceeding the needs of the PGZ”, have been concluded by the former managers. Nonetheless, the provisions of the aforesaid agreements do not allow for taking any radical steps within that issue. NIK auditors have admitted that PGZ may, in the emerging context, terminate the agreements without arranging this with the landlord.

The current management of the Polish Armament Group has declared that it is driven towards restoration of the Polish Central Industrial region, and that the business activities undertaken aim at referring to its heritage. Thus, PGZ is going to establish a branch in Radom and expand its presence in that city. Moreover, a new seat is going to be placed there, with the facilities being owned by the Group. In the city of Radom, a Centre for Innovation and New Technologies for the PGZ Capital Group is going to be established too. 

The Supreme Chamber of Control, within the context of the establishment and operations of the Polish Armaments Group, has been examining the period between 1st January 2012 and 18th August 2016. Moreover, later and earlier events were also a subject to the audit, only if they had an impact on the main focal point of the procedure. The Polish audit body did not question the decision to establish the group, however the organ has expressed a number of doubts related to the actions undertaken within the consolidation procedure. The charges, related i.e. to the lack of proper analysis that would precede the consolidation, or to the improper documentation and recording of the process, have been addressed to the Ministry of Treasury, among other bodies.